South Asia: Ship breaking prices rise w-o-w on improved demand

Competition remained fierce between Bangladesh, India and Pakistan with the latter two emerging as competitors against the prolific Bangladeshi buyers. Meanwhile, Bangladesh continues to secure the highest share of the market tonnage as we enter the final months of the year. Ship recycling prices saw an uptick of $10/light displacement tonnage (LDT) w-o-w in India, Bangladesh and Pakistan.

Bangladesh surging ahead

Bangladesh has again retained its leading position in the market last week, surging ahead with some impressive purchases. Few FSUs have been delivered to Chattogram buyers and are currently undergoing the hot works cleaning process required to clear the vessels.

Deals

• A tanker, Tina, of 12,236 LDT, arrived at the port.
• Total tonnage reported last week at Chattogram Port was 13,974 LDT, up by 74% w-o-w.

India competing well

Last week, a number of sales were concluded by Alang recyclers, including several older ropax units and some tankers intended for HKC recycling. The Indian rupee (INR) is trading firm at 74 against the dollar.

Deals

• Three chemical tankers, Bunga, of 13,037 LDT, Duruca, of 2,718 LDT, and Melati Setu, of 10,211 LDT, arrived at the port.
• A chemical tanker, Golden Tulip, of 6,582 LDT, was beached.
• Total tonnage at Alang Port last week amounted to 78,058 LDT, up by 31% w-o-w.

Pakistan not far behind

As the currency slowly and gradually stabilises in Pakistan, demand and market pricing have become competitive once again, against the Indian and Bangladeshi markets. Meanwhile, Gadani recyclers are certainly hoping to get back into action to fill empty yards.

The Pakistan market is not too far apart and with a bit more effort, can certainly secure its share of tonnage once again.

Deals

• Two tankers, Alba Sun, of 16,000 LDT, and Ingrid, of 15,954 LDT, arrived at the port.
• Total tonnage at Gadani Port last week was reported at 50,638 LDT, down by 29% w-o-w.

Outlook

Overall, steel prices continue to impress across the board and currencies seem to have stabilised for the moment. Demand for ships is more likely to rise in the fourth quarter of the year.

Prices as on 2nd Nov’21

Prices in $/LDT
Source- SteelMint Research